The Government Service Insurance System (GSIS) has solidified its position as a key player in the Philippine construction sector by acquiring a 9.5% stake in Megawide Construction Corp. This move involves the purchase of 111.94 million common shares, bringing GSIS's total holdings to 191.71 million.
A Boost for Infrastructure Development
The investment of GSIS reflects another vote of confidence in our vision of engineering a First-World Philippines. — Edgar B. Saavedra, Chairman and CEO, Megawide
- GSIS now holds 9.5% of Megawide's shares.
- Investment aims to support government infrastructure initiatives.
Megawide's Chairman and CEO Edgar B. Saavedra expressed optimism about the investment, linking it to the company's commitment to enhancing social and transport infrastructure. The firm is involved in various public-private partnerships, including the construction of socialized housing through the government's expanded Pambansang Pabahay para sa Pilipino (4PH) program.
This acquisition follows a recent partnership announcement between Megawide and the Home Development Mutual Fund (Pag-IBIG Fund), which aims to build over 7,000 housing units. Furthermore, Megawide is expanding its footprint in residential developments in Cavite and Bulacan, adapting to the rising demand for affordable housing.
Financially, Megawide is on a positive trajectory, reporting a 24% year-on-year increase in net income for the first quarter, totaling P265.35 million. The company aims for a net income of approximately P1.2 billion this year, supported by reduced borrowing costs due to a P7 billion debt reduction.
As the infrastructure sector continues to attract investment, Megawide's latest developments and strategic partnerships position it well to contribute to the Philippines' growing needs in both housing and transportation.